Exploratory Study: Consumer Behaviour's Impact on Tesco's Demand

This document is a dissertation proposal focusing on the impact of consumer behavior on demand management and forecasting, specifically examining Tesco Plc. The research aims to explore how customer loyalty, satisfaction, and promotional strategies influence demand. The proposal includes a literature review discussing customer loyalty, satisfaction, emotional attachment, and the effects of promotions and price reductions. It provides an overview of Tesco Plc's operations, its supply chain, and its focus on customer behavior to improve demand. The study will investigate the different ways Tesco can create emotional connections with consumers and the effects of promotional activities on demand. The proposal outlines the research objectives, questions, and the context of the study within Tesco's operations and the broader retail sector.

MSc Dissertation Proposal Template
MSc Dissertation Proposal Template
MSc in Supply Chain Management
Project Working Title: __________________________________________________
_____________________________________________________________________
Author:
Student ID:
Date:
Student contact details
DIT e-mail address:
Personal e-mail address:
Skype username:
Where will you be based while working on the dissertation? (please mark with an X)
Dublin: ☐ Ireland (not Dublin): ☐ Outside Ireland: ☐
1

MSc Dissertation Proposal Template
This template aims to guide your focus on the purpose and structure of your
dissertation. At this stage, this is a working document but one which reflects the
intent and outlook of your dissertation. It is likely and permissible that as you
progress with your dissertation, several aspects of content, direction or emphasis of
the dissertation.
1. Research Aim or Purpose:
An exploratory study of the impacts of consumer behaviour on demand
management and forecasting. A Case on Tesco Plc.
2. Research Objectives and/or Questions
In present investigating research, investigator is going to work on an aim i.e.
“An exploratory study of the impacts of consumer behaviour on demand
management and forecasting. A Case on Tesco Plc.”. Along with this, based on the
aim, researcher has developed a range of objectives and these are:
 To explore the importance of Customer loyalty on demand management and
forecasting.
 To identify the effectiveness of customer satisfaction in improving demand
management.
 To determine the different ways through which Tesco Plc can easily create an
emotional attachment with consumers.
 To investigate the influence of promotion and lowering price on demand of
Tesco's product and services.
Research questions can be:
 What is the importance of Customer loyalty on demand management and
forecasting?
 Explain the effectiveness of customer satisfaction in improving demand
management?
 Evaluate the different ways through which Tesco Plc can easily create an
emotional attachment with consumers?
2

MSc Dissertation Proposal Template
 Describe the influence of promotion and lowering price on demand of Tesco's
product and services?
3. Literature review
Literature review is a type of scholarly paper which includes current
knowledge related to substantive findings as well as methodological and theoretical
contributions to a specific topic. This section of research is essential because it will
help a researcher to explore particular issue and area of study through different
sources such as scholarly articles, books etc. Along with this, main purpose of
literature review is to identify conflicts and gaps in previous research (Agus and
Shukri Hajinoor, 2012). With the help of this section, researcher is able to address all
objectives and questions of research in systematic and effective manner.
The importance of Customer loyalty on demand management and forecasting.
According to Brandon Carter, (2018), customer loyalty is when an individual
transacts with a brand or buy a particular product on an ongoing basis. It introduce
to an effective situation where a customer creates a long standing loyalty or
preferences towards a specific service or products. It is the important objectives of
customer relationship management and defines the loyalty which is develop
between a clients and organisations, products or brands. Along with this, demand
management and forecasting is recognizing entire demand for products and services
to assist the marketplace. Demand of product is prioritized when its supply is lacking.
Proper management of demand facilitates the use of resources and planning
for profitable and positive outputs and may consist marketing programs designed to
maximise or decrease demand in a relatively short period of time. Therefore long
lasting and strong customer loyalty is highly support in managing and forecasting
demand systematically. It will help a Tesco by reducing its marketing cost, minimizing
service cost, improving brand image etc. Thus with the help of better customer
loyalty company can easily forecast and manage demand (Ahi and Searcy, 2013).
There are another benefits of customer loyalty which will help an organisation to
forecast and manage demand systematically. It includes; loyal customers can act as a
3

MSc Dissertation Proposal Template
brand ambassadors, they protect their business from competitions, offer constrictive
feedback and help a company to retain strong position at market.
The effectiveness of customer satisfaction in improving demand management.
According to the Sophia Bernazzani, (2019), customer satisfaction is a metric
followed to quantify degree to which a buyer is happy with a service, product or
experience. It is a effective term used to define a scenario when an exchange meets
the expectations and needs of its user. Along with this, it captures the provision of
services and goods that fulfil expectation level of customers in terms of services and
quality in relation to price paid. Customer satisfaction in an organisation also be
used in order to measure how supply of services and goods surpasses customer
expectations. Beside this, demand management is refer as a planning methodology
applied to manage and forecast the demand of services and products of Tesco. High
level of customer's satisfaction is essential for the growth and success of an
organisation within predetermined time period (Barney, 2012). In demand
forecasting and management, customer satisfaction is number one goal for an
organisation because it will help them in increasing profitability. It will also support
Tesco by minimizing its inventory costs and improving brand awareness at
marketplace. When company accurately forecast demand, they only require people
or place to manage the inventory their customers need in the short term. It will help
company to increase their profit and market share within given time duration.
Therefore, customer satisfaction is more significant and beneficial for the
development and success of company at marketplace (Monczka and et. al., 2015).
Therefore, it is the duty of an organisation to maintain customer's satisfaction and
retain them long term relation.
Thus, it will be more significant and essential for an enterprise to achieve
better results or outputs within given time duration (Beske and Seuring, 2014). Apart
from this, demand forecasting is useful process which uses analytics and data to
predict as exactly as possible the purchaser demand for a particular time in order to
fulfil customer's need, optimize cash flow and minimize inventory costs.
The different ways through which Tesco Plc can easily create an emotional
attachment with consumers.
4

MSc Dissertation Proposal Template
According to the Remez Sasson, (2019), emotional attachment is refer
clinging and attachment to people, habits, beliefs, circumstances and possessions.
There are different ways should use by Tesco in order to develop emotional
attachment or connection with customers. Some ways are determined as under:
Give them a sense of comfort and order: Customers fell more safe and
secure when they are treated more emotionally and are given more importance
regarding their skin care and beauty. When there is any query in the minds of
customers it need to be resolved quickly so, that they can be satisfied for the
product (Chicksand and et. al., 2012). If in case the customer is well aware about the
product durability, methods to use, when to use the product, product side-effects
above all, the product guider should advice the products advantages and dis-
advantages to the consumer as this create a influence on the customers mind to
purchase it and be loyal for it.
Give them a delightful customer experience: In the era of 21st century the
greatest challenge in economic climate is to have an amazing , memorable,
thoughtful customer experience. Company should use various tricks to impress the
customer or to please them accordingly it can be done by over delivering the
product beyond their expectations (Christopher, 2016). Suppose : Company TISCO is
over delivering the product of food to a customer. The order was for happy meal but
the company gave a small token of voucher to the customer which is valid for 3 days
only and can be applicable on the store of TISCO.
Don't be afraid to get personal and use humor: In business world everyone
need to be professional,and respectful and use appropriate language on the floor
but it does not mean that the real human attire is lost in the working area. To create
a healthy relation with the customers seller should talk about the interest field of the
customer (Ellram and Cooper, 2014). It helps to create a new level of connection
with buyer and the seller. Customer are more attracted to be realistic in nature
rather than being fake.
Keep your promises: Promises means to be on words at any cost and does
not change due to any circumstances. Product guider should keep its trust and
5

MSc Dissertation Proposal Template
response timely to the customers regarding any query (Fredendall and Hill, 2016). It
helps to build a trust for the company for long term.
To investigate the influence of promotion and lowering price on demand of Tesco's
product and services
According to Hoejmose Brammer and Millington, (2012), for every single
business organisation, demand plays a crucial role. If demand of a product stays low
it directly impacts upon sales of it. That is why it is essential for companies to keep
on making decisions on a regular basis in order to improve the demand. Here, it can
be said that there are ample number of elements that can be used by a company like
Tesco and these are promotion and lowering price strategy. It is being found that,
both of the factors could boost up the demand of both product and services for a
specific time frame. Let's take an example of Tesco's products where there demand
was rapidly decreasing. BOD has decided to bring a little change among its products
and promoted it among different media like television, social media and so on. With
the help of this, Tesco could easily improve the demand through different
promotional approaches (Hugos, 2018). On the other hand, if it is talked about
lowering prices, it can easily grab attention of customers in all over the world
through offering customers with products and services with low prices. Away with
this, it is being critically analysed that promotion sometimes stays positive and
sometimes it may impact negatively on demand because of green washing practices.
For an example, Tesco has developed an advertisement for a specific product like
energy drink in which they showed that an individual could stay energised even
when he/she is ill. But, when an investigation took place, whatever organisation has
mentioned was somehow wrong because, the drink that they were selling did not
had those ingredients. Here, the demand of product got increased for a certain
period of time but then when all the green washing act came in front, the demand
got decreased (Kannan and et. al., 2013).
4. Overview of Company/Sector/Research Context:
Tesco Plc which is a famous British multinational grocery brand and a general
merchandise which is performing across the countries. Founder Jack Cohen, found
Tesco Plc in the year of 1919. Currently company has head quartered in England, UK.
6

MSc Dissertation Proposal Template
On the other hand, Tesco Plc specifically dealing in different sectors like retail, food,
manufacturing and many other industries as well with a good range of hypermarket
supermarket, superstore, including a few convenience shops as well. Along with this,
it can be said that due to quality that this company offers, customers has liked them
and this helped them in improving overall existence in more than 11 countries. Tesco
Plc in present time is having more than 7,000 stores. Along with this, Supply chain
management of Tesco mainly coordinates with its suppliers that are having different
kind of transportations like trains, planes, ships and others (Miemczyk, Johnsen and
Macquet, 2012). Over the years, Tesco has kept its focus on improving the overall
performance level through developing strategies related to improving customer
loyalty at different working conditions. In order to improve the demand of Tesco's
products at supermarket it is specifically required to focus on consumer behaviour
because their needs and requirements gets changes on a regular basis. Considering
that, an all new product for its customers has been developed which is Sugar Free
Juice so that to expand business at United Kingdom in order to improve market
share. Since, citizens of United Kingdom and of developed countries that has kept
their focus on improving health. Due to this new trend of health consciousness.
Tesco's action which was taken was taken for doing business at international level
are regularly performing well at marketplace. Since the company is having a good
range of products and services, which has made the company a business leader in
various countries like Germany, United Kingdom, and so on. In order to expand
business with a new product in United Kingdom itself, it will be required for Tesco to
keep an eye on trends and needs of targeted customers.
Supermarkets of Tesco is specifically improving its supply chain management
day by day which means organisation has a really very strong relations with its
suppliers. But, this led Tesco to develop the overall supply chain management much
more complex in nature. Since a decade, company has decided to expand its
business which led them to work in almost every industry. In present context, there
are a range of activities that Tesco is doing and these are given beneath:
7

MSc Dissertation Proposal Template
Estate agency: In 2007, this company was launched online property whose
name is “tesco property market. As many complaints arise project god suspended
and later on company developed new comprehensive property selling services.
Restaurants, cafes and takeaways: In 2013, TESCO bought 49% ownership
from Harris+Hoole which makes a coffee chop chain. Whereas in march 2013, tesco
launched family friendly restaurant chain, named Giraffe for$50m for promotion of
small chain supermarkets.
Electricity, gas, phone and internet: TESCO also buy and sell their own
software at cheapest rate. It also offers world wide communication services, and
provides benefits on phones and tariffs, landlines phone, home internet access and
directory of electricity, gas and online switching service.
Financial services: In 1997 TESCO launched a financial services. In Europe, it
became a fastest service provider. TESCO company bank proffer around 28 products
like car & home insurance, saving accounts and loans. In April 2010, British financial
market made estimations that they will gain 10% share which is half of Barclays
share. In February 2012, they introduced mortgage loan for customers. Even they
have their own exchange rate for transforming overseas into sterling pound.
On the other hand, Tesco Supermarket has also consists with a range of
strategic issues and these are given below:
Investigating the customers behavioural patterns in supply chain – Since
Tesco, has kept its focus on business expansion in different countries of Asia, it is
essential for the company to analyse the consumer's attitude and behaviour related
to Sugar Free Juice that the company is offering. Since the needs and wants of
targeted customers of Asia country is different from the existing customers of Tesco
in nations where company is already doing business like United Kingdom, Germany
and more.
Does not know which shoppers to target of UK's different states- Tesco's
supply chain is specifically really very complex which puts the company in a state
where strategic problems linked with the target market are basically being evaluated
and which came in front. Supermarket is caught between upmarket offers provided
8

MSc Dissertation Proposal Template
by Waitrose, Sainbury's and discounts given by ALDI and LIDL. This discounts have
put pressure on UK supermarket due to which company have to face issues.
5. Research Justification
The basic reason behind conducting the investigation is that, Tesco has done
research to know about how consumer behaviour may impact upon demand
management and forecasting. Supermarket of Tesco is consists of supply chain
management required in businesses but specifically it gets disturb because of the
issues or factors like change in needs of customers, current trends and more. Along
with this, it has also been analysed that data which is being carried would basically
lead Tesco in hitting their targets.
6. Methodology:
Research approach: Research approach divided into two parts such as
inductive research and deductive research. Deductive theory is used for hypothesis
testing which is based on existing theory and helps in finding solution. Whereas
inductive theory is used for making of new theory from availability of data.
Research methods: Research method is used for data collection and data
analysis. There are three types of research methods such as quantitative research,
qualitative research and mixed research. In this research, quantitative research is
used for interpretation of data from charts and graph.
Purpose of study: The purpose of study of this research is very clear and
accurate. It involves many types of study that is explorative, explanatory and
descriptive. In this research descriptive study is used because it provides detailed
information for analysing the data.
Research strategy: research strategy is a general plan which says how the
researcher get answer of research problem. Research strategy involves various
categories such as case study, questionnaire, surveys, experiments, action research
and so on. Researcher is used questionnaire method for analysing an overall report.
Research sample: In this report sample size of respondent is 40. Perspective
of every 40 respondents are noted on their product and services provided by the
company.
9

MSc Dissertation Proposal Template
Questionnaire
Q 1) Do you think that, customer loyalty impacts upon demand management of a
company?
a) Yes
b) No
Q 2) What are the ways through which customer loyalty could be enhanced toward
Tesco?
a) Make customer service a priority
b) Make the relationship more than just business like
c) Be caring and expressive
Q 3) What are the factors, that need proper attention while managing the demand?
a) Reduce lead times
b) Implement a demand-driven supply chain
c) Smooth demand variability.
Q 4) As per your point of view, consumer behaviour towards a company gets
changes regularly or not?
a) Yes
b) No
THEMATIC ANALYSIS:
Theme 1: Customer loyalty impacts upon demand management.
Q 1) Do you think that, customer loyalty impacts upon demand
management of a company?
Frequency
a) Yes 30
b) No 10
10

MSc Dissertation Proposal Template
a) Yes b) No
0
5
10
15
20
25
30
30
10
Frequency
Interpretation: From the above given graph, it can be concluded impact of customer
loyalty on demand management. Out of 40 respondents, 30 are say yes whereas 10
are say no. It is essential and important for growth and success of organisation
within predetermined time period.
Theme 2: Ways through which customer loyalty could be enhanced toward Tesco
Q 2) What are the ways through which customer loyalty could be
enhanced toward Tesco?
Frequency
a) Make customer service a priority 20
b) Make the relationship more than just business like 8
c) Be caring and expressive 12
11

MSc Dissertation Proposal Template
a) Make customer service a priority
b) Make the relationship more than just business like
c) Be caring and expressive
0
2
4
6
8
10
12
14
16
18
20
20
8
12
Frequency
Interpretation:
From the above specified graph it is analysed that out of 40 respondents, 20
are suggest company could make customer service a priority, 8 are recommend
Tesco could Make the relationship more than just business like and 12 are
recommend business should make caring and expressive relation with the
customers. Thus, all these are essential and significant for an organisation to retain
strong and long term relation with customers and attain effective outputs within
given time duration.
Theme 3: Factors that need proper attention while managing the demand
Q 3) What are the factors that need proper attention while
managing the demand?
Frequency
a)Reduce lead times 18
b)) Implement a demand-driven supply chain 12
c) Smooth demand variability. 10
12

MSc Dissertation Proposal Template
a)Reduce lead times
b)) Implement a demand-driven supply chain
c) Smooth demand variability.
0
2
4
6
8
10
12
14
16
18
18
12
10
Frequency
Interpretation:
From the above chart, it is cleared that there are different factors that need
proper attention while managing the demand. In this 18 out of 40 respondents are
suggest company should Reduce lead times, 12 respondents are advise to the
organisation to Implement a demand-driven supply chain and 10 are suggest,
company should smoothly create demand variability.
Theme 4: Consumer behaviour towards a company gets changes regularly
Q 4) As per your point of view, consumer behaviour towards a
company gets changes regularly or not?
Frequency
a) Yes 25
b) No 15
13

MSc Dissertation Proposal Template
a) Yes b) No
0
5
10
15
20
25
25
15
Frequency
Interpretation:
From above specified graph it is analysed requirement for changing in
consumer behaviour towards an organisation. In this, 25 out of 40 respondents are
say yes whereas 15 are say no. as a conclusion, changes in customer behaviour is
significant and essential for the success and growth of company within given time
duration. It will also help an enterprise to achieve better results and to increase their
profitability easily.
6. Conclusions:
From the study of above report, it is conclude that through demand
management could help a business organisation for reaching to an another level
along with this, it also helps in expanding business right on time. In UK, demand
management could aid Tesco for expansion of their business on time for using right
quality products. In Tesco, decision of purchasing raw materials helps a company for
managing their production process properly. Whereas, distribution strategy is a very
important factor for making supply chain management and dealing with their
connections. It makes an good relationship between suppliers and managers.
7. Project Plan:
14

MSc Dissertation Proposal Template
Please use the template table below to provide a time frame describing when you
plan to complete the stages of your dissertation. Remember to work in extra time to
deal with any potential problems!
Please note the below is an example only, feel free to add/remove sections as
required!
Title/Task Month 1-3 Month 4-7 Month 8-11 Month 12-15 Month 16-19 Month
20-24
Literature Review
Research Design
Design of Systems
Analysis
Testing Guide
Project Review
Interviews
Cross Analysis
Expert Consultation
Development of
Case Studies
Final Draft
Presentation
8. Management and Company Liaison (if applicable):
State clearly how frequently you have agreed to visit the company sponsor to review
progress against your objectives. State if you are required to make a formal
presentation of results or if this dissertation is to be treated as confidential. If at the
15

MSc Dissertation Proposal Template
time you compile this document do not have these details available, leave blank until
you know the details.
9. Academic Supervisor: _______________________________
(To be appointed immediately following proposal review)
I confirm that:
a) Where appropriate, I have acknowledged the work of other and referenced
the work carried out in collaboration with other person.
b) I understand that as an examination candidate I am required to abide by the
Regulations of the University and to conform to its discipline.
c) I have read the College’s Ethical Guidelines, and confirm that all research will
be carried out in accordance with the College’s ethical Policy
(http://www.dit.ie/researchandenterprise/researchatdit/ethicsindit/
content/procedures/ ).
Student Signature: ________________________
Date: ________________________
Confirm acceptance by Academic Supervisor: ________________________
Date: ________________________
NOTES, COMMENTS or CONCERNS (to be completed by the reviewer):
16

MSc Dissertation Proposal Template
REFERENCES
Agus, A. and Shukri Hajinoor, M., 2012. Lean production supply chain management
as driver towards enhancing product quality and business performance: Case
study of manufacturing companies in Malaysia. International Journal of
Quality & Reliability Management. 29(1). pp.92-121.
Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green
and sustainable supply chain management. Journal of cleaner production. 52.
pp.329-341.
Barney, J. B., 2012. Purchasing, supply chain management and sustained competitive
advantage: The relevance of resource‐based theory. Journal of supply chain
management. 48(2). pp.3-6.
Beske, P. and Seuring, S., 2014. Putting sustainability into supply chain management.
Supply Chain Management: an international journal. 19(3). pp.322-331.
Chicksand, D. and et. al., 2012. Theoretical perspectives in purchasing and supply
chain management: an analysis of the literature. Supply Chain Management:
An International Journal. 17(4). pp.454-472.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Ellram, L. M. and Cooper, M. C., 2014. Supply chain management: It's all about the
journey, not the destination. Journal of Supply Chain Management. 50(1).
pp.8-20.
Fredendall, L. D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
Hoejmose, S., Brammer, S. and Millington, A., 2012. “Green” supply chain
management: The role of trust and top management in B2B and B2C markets.
Industrial Marketing Management. 41(4). pp.609-620.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Kannan, D. and et. al., 2013. Integrated fuzzy multi criteria decision making method
and multi-objective programming approach for supplier selection and order
allocation in a green supply chain. Journal of Cleaner production. 47. pp.355-
367.
Miemczyk, J., Johnsen, T. E. and Macquet, M., 2012. Sustainable purchasing and
supply management: a structured literature review of definitions and measures
at the dyad, chain and network levels. Supply Chain Management: An
International Journal. 17(5). pp.478-496.
Monczka, R. M. and et. al., 2015. Purchasing and supply chain management.
Cengage Learning.
Online
Brandon Carter, 2018. Customer Loyalty. [Online]. Available
through:<https://blog.accessdevelopment.com/what-is-the-definition-of-
customer-loyalty >.
Sophia Bernazzani, 2019. Customer Satisfaction. [Online]. Available
through:<https://blog.hubspot.com/service/what-is-customer-
satisfaction>.
17

MSc Dissertation Proposal Template
Remez Sasson. 2019. Challenges faced by M&S. (2019). [Online]. Available
through:<https://www.successconsciousness.com/blog/letting-go/what-
does-emotional-attachment-mean/>.
Matteo Colombi, 2016. Knowledge Management is Necessary. (2019). [Online].
Available through:<http://www.broadvision.com/blog/top-5-reasons-
knowledge-management-necessary/>.
18